Financial Report Financial reports from the largest companies of the world

Citigroup earnings did not meet analysts’ expectations

The Citigroup Earnings for the fourth quarter of 2011 did not meet analysts' expectations and lower market valuation of the company against the shaky start to the season of the accounts in the banking sector. For the fourth quarter of 2011 global financial services company reported a decline in profit without emergency operations to 38 cents a share from 40 cents per share for the same period a year earlier. Bank justifies the delay of the weaker bond trading and decreased revenues from investment banking. Citigroup's net profit for the fourth quarter shrank by 11% yoy mainly due to declining revenues by 1.2 billion USD increase in operating costs by 465 million USD and soaring tax provisions with 470 million USD. The growth of these costs offset savings from credit operations 41%, or 2 billion USD, compared with same period last year. The revenues for the quarter amounted to 17.2 billion USD were 7% lower than those in the fourth quarter of 2010, when they reached 18.37 billion USD. The analysts had expected Citigroup to reported earnings excluding extraordinary items of 49 cents per share and revenue of 18.54 billion, Reuters reported.
After publication of the results the company's shares have fallen by 2.6%.